GST to make liquor cheaper at Kolkata eateries

Though GST has turned a range of products and services dearer, those who love a drink will have reason to raise a toast. With the withdrawal of service tax, liquor will be six percent cheaper at bars and restaurants.

Eating out, thus, will be marginally lighter on the pocket as the tax on food in air-conditioned restaurants drops from 20.5 percent to 18 percent — if the benefit is actually passed down to the customer. Non air-conditioned restaurants will levy a 12 percent  tax on food and drinks. Before GST, the tax component consisted of a 14.5 percent VAT and a 6 percent service tax.

Liquor had a 6 percent service tax across segments, which has now been withdrawn. Most restaurants would be eager to pass down the benefit to patrons as even if the reduction is marginal, it is still an enticement as dining out was becoming more and more expensive over the last few years, said Sudesh Poddar, president of Hotel and Restaurants Association of Eastern India.